The moves are widely seen as an effort by CEO Steve Ballmer to promote managers with engineering backgrounds to top positions in an effort to better compete against companies like Apple and Google who hold significant leads over Microsoft in such area as mobile computing and online search.

Ballmer announced the latest changes Wednesday in an e-mail to Microsoft employees.

"We're already making strong traction across our Server and Tools Business by embracing cloud services," Ballmer wrote. Nadella "has deep experience in both our server business and online services, which will help accelerate our momentum while setting the course to deliver the cloud computing scenarios of the future."

Ballmer also disclosed that Amitabh Srivastava, senior vice president in the Server and Tools Business, is leaving Microsoft. "Windows Azure is in a great place and Amitabh is ready to move to a new phase in his career," Ballmer said in his e-mail. "He has done stellar work for the company and will work to ensure a smooth transition with the Windows Azure team."

Srivastava has been with Microsoft since 1997 and played a central role in developing the Windows Azure cloud computing platform that just reached its one-year anniversary Feb. 1.

XChange Solution Provider 2015 is finally upon us and the timing couldn't be better. The premier channel event is happening March 1-3 in Dallas, bringing together 225 solution provider decision makers from across North America. CRN is at the event to provide news, analysis and a firsthand take from partners.